Examining technical and behavioural possibilities in developing fleet services in the machinery manufacturing context
DOI:
https://doi.org/10.7146/propracon.v6i1.25110Keywords:
Service development, machinery fleet, financial analysesAbstract
This paper shows how service development for a machinery fleet can be supported by financial analyses. In particular,the paper shows how service managers’ work can be supported by accounting information. The paper draws upon an
interventionist case study at a machinery manufacturer in Finland. The paper contributes to the literature on pragmatic
constructivism by extending its usability into new groups of managerial actors in the timely context of service
development for machinery fleets. Moreover, the paper contributes to the servitization literature, by showing ways to
identify technical and behavioural possibilities and to overcome related difficulties in manufacturing companies’
transition to service business.
References
Adams-Bigelow, M. (2004). First Results from the 2003 Comparative Performance Assessment Study (CPAS). PDMA Handbook of New Product Development. K. B. Kahn. Hoboken, NJ, John Wiley and Sons: 546-566. https://dx.doi.org/10.1002/9780470172483.ch36
Ahrens, T., & Chapman, C. S. 2004. Accounting for flexibility and efficiency: A field study of management control systems in a restaurant chain. Contemporary Accounting Research, 21(2): 271-301. https://dx.doi.org/10.1506/VJR6-RP75-7GUX-XH0X
Anderson, A. M. 2008. A Framework for NPD Management: Doing the Right Things, Doing them Right, and Measuring the Results. Trends in Food Science and Technology, 19(11). http://dx.doi.org/10.1016/j.tifs.2008.01.015
Araujo, L. and Spring, M. 2006. Services, products, and the institutional structure of production. Industrial Marketing Management, 35(7): 797-805. http://dx.doi.org/10.1016/j.indmarman.2006.05.013
Barczak, G. and Sultan, F. 2006. Use IT or Lose It. Marketing Management, 15(2): 30-34. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=20545155&site=ehost-live&scope=site
Barczak, G., Sultan, F. and Hultink, E. J. 2007. Determinants of IT Usage and New Product Performance. Journal of Product Innovation Management, 24: 600-613. https://dx.doi.org/10.1111/j.1540-5885.2007.00274.x
Beath, C. M. 1991. Supporting the Information Technology Champion. MIS Quarterly, 15(3): 355-372. http://www.jstor.org/stable/249647
Cooper, R. G. and Edgett, S. J. 2008. Maximizing Productivity in Product Innovation. Research Technology Management, 51(2): 47-58. http://dx.doi.org/10.1080/08956308.2008.11657495
Cooper, R. G. and Kleinschmidt, E. J. 1996. Winning Businesses in Product Development: the Critical Success Factors. Research Technology Management, 39: 18-29. http://www.tandfonline.com/doi/abs/10.1080/08956308.1996.11671073
Davila, A., Foster, G., & Oyon, D. 2009. Accounting and control, entrepreneurship and innovation: Venturing into new research opportunities. European Accounting Review, 18(2): 281-311. http://dx.doi.org/10.1080/09638180902731455
Ettlie, J. E., Bridges, W. P. and O'Keefe, R. D. 1984. Organization Strategy and Structural Differences for Radical Versus Incremental Innovation. Management Science, 30(6): 682-695. http://dx.doi.org/10.1287/mnsc.30.6.682
Gebauer, H., Fleisch, E., & Friedli, T. 2005. Overcoming the service paradox in manufacturing companies. European Management Journal, 23(1): 14-26. http://dx.doi.org/10.1016/j.emj.2004.12.006
Grover, V. 1993. An Empirically Derived Model for the Adoption of Customer-Based interorganizational Systems. Decision Sciences, 24(3): 603-649. https://dx.doi.org/10.1111/j.1540-5915.1993.tb01295.x
Hall, M. 2010. Accounting information and managerial work. Accounting, Organizations and Society, 35(3), 301-315. http://dx.doi.org/10.1016/j.aos.2009.09.003
Heinzelmann, R. 2016. Making up performance: the construction of “performance” in venture capital firms’ portfolios. Qualitative Research in Accounting & Management, 13(4): 445-471. http://dx.doi.org/10.1108/QRAM-09-2015-0078
Jack, L. 2015. Further explorations of possibilities, methodologies of the future and rogue traders. Proceedings of Pragmatic Constructivism, 4(2): 32-38. http://www.propracon.com/article/view/20933
Jakobsen, M., Johansson, I.L. and Nørreklit, H. (Eds.). 2011, An Actor’s Approach to Management: Conceptual Framework and Company Practices, DJØF Publishing, Copenhagen.
Jönsson, S., & Lukka, K. 2006. There and back again: doing interventionist research in management accounting. Handbooks of Management Accounting Research, 1, 373-397. http://dx.doi.org/10.1016/S1751-3243(06)01015-7
Kawakami, T., Durmuşoğlu, S. S. and Barczak, G. 2011. Factors Influencing Information Technology Usage for New Product Development: The Case of Japanese Companies. Journal of Product Innovation Management, 28(6): 833-847. https://dx.doi.org/10.1111/j.1540-5885.2011.00848.x
Krishnan, V. and Ulrich, K. T. 2001. Product Development Decisions: A Review of Literature. Management Science, 47(1): 1-21. http://dx.doi.org/10.1287/mnsc.47.1.1.10668
Laine, T. 2009. Exploring pilot projects of a manufacturer on service R&D to understand service as an accounting object. Tampere University of Technology. Dissertation: publication 806. http://urn.fi/URN:NBN:fi:tty-200904231051
Laine, T., Korhonen, T., & Martinsuo, M. 2016a. Managing program impacts in new product development: An exploratory case study on overcoming uncertainties. International Journal of Project Management, 34(4), 717-733. http://dx.doi.org/10.1016/j.ijproman.2016.02.011
Laine, T., Korhonen, T., Suomala, P., & Rantamaa, A. 2016b. Boundary subjects and boundary objects in accounting fact construction and communication. Qualitative Research in Accounting & Management, 13(3), 303-329. http://dx.doi.org/10.1108/QRAM-09-2015-0085
Laine, T., Paranko, J., Suomala, P. 2012a. Using a business game concept to enhance servitization: a longitudinal case study. Managing Service Quality, 22(5), 428-446. http://dx.doi.org/10.1108/09604521211281369
Laine, T., Paranko, J., Suomala, P. 2012b. Management accounting roles in supporting servitization: Implications for decision-making at multiple levels. Managing Service Quality, 22(3), 212-232. http://dx.doi.org/10.1108/09604521211230969
Liew, A. 2015. The Use of Technology-Structured Management Controls: Changes in Senior Management’s Decision-Making Behaviours. International Journal of Accounting Information Systems, 17: 37-64. http://dx.doi.org/10.1016/j.accinf.2014.05.001
Lindholm, A., Laine, T. & Suomala, P. Forthcoming. The potential of management accounting and control in global operations - profitability-driven service business development. Journal of Service Theory and Practice.
Lukka, K., & Suomala, P. 2014. Relevant interventionist research: balancing three intellectual virtues. Accounting and Business Research, 44(2), 204-220. http://dx.doi.org/10.1080/00014788.2013.872554
Mathieu, V. 2001. Service strategies within the manufacturing sector: benefits, costs and partnerships. International Journal of Service Industry Management, 12(5), 451-75. http://dx.doi.org/10.1108/EUM0000000006093
Microsoft. 2005. Winning at New Products: Pathways to Profitable Innovation. White Paper, Microsoft Corporation and the Product Development Institute.
Neu, W.A. & Brown, S.W. 2005. Forming successful business-to-business services in goods-dominant firms. Journal of Service Research, 8(1), 3-17. https://doi.org/10.1177/1094670505276619
Nørreklit, H., Nørreklit, L., & Mitchell, F. 2010. Towards a paradigmatic foundation for accounting practice. Accounting, Auditing & Accountability Journal, 23(6), 733-758. http://dx.doi.org/10.1108/09513571011065844
Nørreklit, H., Raffnsøe-Møller, M., & Mitchell, F. 2016. A pragmatic constructivist approach to accounting practice and research. Qualitative Research in Accounting & Management, 13(3), 266-277. http://dx.doi.org/10.1108/QRAM-05-2016-0039
Oliva, R. and Kallenberg, R. 2003. Managing the transition from products to services. International Journal of Service Industry Management, 14(2), 160-72. http://dx.doi.org/10.1108/09564230310474138
Pianezzi, D., Cinquini, L., 2016. Assessing the validity of accounting for human rights: a pragmatic constructivist perspective. Qualitative Research in Accounting & Management, 13(3), 370-391. http://dx.doi.org/10.1108/QRAM-09-2015-0084
Sarin, S. 2009. Taking Stock and Looking Ahead: An Introduction to the Special Issue on New Product Development Teams. Journal of Product Innovation Management, 26(2): 117-122. https://dx.doi.org/10.1111/j.1540-5885.2009.00340.x
Stewart-Knox, B. and Michell, P. 2003. What Separates the Winners from the Losers in New Food Product Development? Trends in Food Science and Technology, 14 (1-2): 58-64. http://dx.doi.org/10.1016/S0924-2244(02)00239-X
Suomala, P., Lyly-Yrjänäinen, J., & Lukka, K. 2014. Battlefield around interventions: A reflective analysis of conducting interventionist research in management accounting. Management Accounting Research, 25(4), 304-314. http://dx.doi.org/10.1016/j.mar.2014.05.001
Teo, T. and Choo, W. 2001. Assessing the Impact of Using the Internet for Competitive Intelligence. Information and Management, 39(1): 67-83. http://dx.doi.org/10.1016/S0378-7206(01)00080-5
Downloads
Published
How to Cite
Issue
Section
License
Previous and future use of the work
ProPraCon assumes the non-exclusive rights to publish and store the work of its authors, once they have consented to a publication. Since the rights to publish are non-exclusive, authors are free to re-use their work, e.g., to publish it in other media (as ProPraCon aims at publishing proceedings). Hence, it is explicitly allowed that works submitted to ProPraCon may be published in a somehow similar form in other media. Yet, submitting authors warrant that the work is not an infringement of any existing copyright and will indemnify the publisher against any breach of such warranty.
Permissions
By submitting work to ProPraCon, the authors declare that they have permission to use any content that has not been created by them. Specifically, when using tables, figures or excerpts of more than 400 words, it is expected that the authors…
- …obtain written permission of copyright for the use in print and electronic formats of any of their text, illustrations, graphics, or other material, in their work. This includes any minor adaptations.
- …acknowledge the original source in captions and in the reference list.
